A Bond Has a Par Value of $1,000 and a Market

question 1

Multiple Choice

A bond has a par value of $1,000 and a market value of $833.40. The conversion price is $45.45. What is the conversion ratio?

• A)21
• B)22
• C)23
• D)24
• E)25

---

Definitions:

Base-Rate Error

A cognitive bias where people misjudge the likelihood of an event by ignoring general prevalence.

Availability Heuristic

An intuitive thinking process that leverages readily available examples to evaluate a specific topic, concept, approach, or decision.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering problem-solving.

Attention Deficit Disorder

A neurodevelopmental disorder characterized by patterns of attention difficulty, hyperactivity, and impulsiveness.